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Bengaluru, NFAPost: Canara Bank has raised capital by issuing Additional Tier-1 Bonds to the tune of Rs 1635 Crore at 8.50% coupon on 31-12-2020. This will help the Bank to increase its capital adequacy ratio

Widely known for customer centricity, Canara Bank was founded by Ammembal Subba Rao Pai, a great visionary and philanthropist, in July 1906, at Mangaluru, then a small port town in Karnataka.

Canara Bank is the fourth-largest public sector bank in the country after its amalgamation with Syndicate Bank in April 2020.

At present, it is functioning with 10,498 Branches, and 13,023 ATMs throughout. The Bank has gone through various phases of its growth trajectory over the hundred years of its existence.

The growth of Canara Bank was phenomenal, especially after nationalization in the year 1969, attaining the status of a national level player in terms of geographical reach and clientele segments. In June 2006, the Bank completed a century of operation in the Indian banking industry.

The eventful journey of the Bank has been characterized by several memorable milestones. Today, Canara Bank occupies a premier position in the comity of Indian banks.

Canara Bank on Thursday reported a 3.8% rise in standalone net profit for the third quarter of financial year 2020 at Rs 329.62 crore compared to Rs 317.52 crore in Q3FY19.

Pre-provisions operating profit was reported at Rs 2,334.33 crore as against Rs 2,357.24 crore on year. Asset quality of the state-run lender improved on a sequential basis as the gross non-performing assets (GNPA) as a percentage of gross advances fell 32 bps to 8.36% in the December quarter from 8.68% in the September quarter. Net non-performing assets declined 10 bps to 5.05% from 5.15% QoQ.

Gross NPA fell 5.3% to Rs 36,644.97 crore from Rs 38,711.33 crore while Net NPA decreased to Rs 21,337.74 crore from Rs 22,090.04 crore QoQ. Provision Coverage Ratio as of December 31, 2019, was at 70.97% compared to 70.11% on September 30, 2019 and 62.54% as of December 31, 2018.

During the quarter, the bank reported a recovery of Rs 4,600 crore which includes recovery from NCLT resolution. Capital adequacy ratio in Q3FY20 stood at 13.86% as against 13.99% QoQ and 12.21% YoY.

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