Canara Bank expects profit in excess of Rs1,500 cr

Canara Bank expects profit in excess of Rs1,500 cr
PTI
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First Published: Mon, Jan 07 2008. 03 27 PM IST
Updated: Mon, Jan 07 2008. 03 27 PM IST
New Delhi: State-run Canara Bank today said it expects its bottom line to exceed Rs1,500 crore during the current fiscal.
“We will close this year with the net profit of over Rs1,500 crore,” Canara Bank Chairman and Managing Director M B N Rao told PTI.
For the year ended March 2007, Bangalore-based bank posted had posted a profit of Rs1,489.3 crore as compared to Rs1,343.2 crore in the previous year.
In the first half of the current fiscal, the bank already has made a profit of Rs642 crore.
Talking about raising capital through bonds, Rao said as and when there is need the bank would raise capital through bonds. As of today there is no need and if the credit off take rises which generally does in the last quarter then there may be some need, he said.
Last week, the bank raised Rs700 crore by issuing 9% bonds to augment its capital resources.
As on 30 September, the capital to risk weighted assets ratio of the bank stood at 13.89% vis-a-vis the regulatory minimum of 9%.
“The bank is fully geared to make a smooth transition to new capital adequacy framework effective April 2008,” he said.
Besides, the lender is looking for the acquisition of a bank which can increase its footprint in the North and West.
“We are still examining it (possibility of acquisition). Definitely in the current year, we should see some action,” he had said.
The bank’s scrip was trading at Rs400.35, up 0.19% on the Bombay Stock Exchange.
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First Published: Mon, Jan 07 2008. 03 27 PM IST