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Abhrajit Gangopadhyay

The spurt in bad loans recall is likely to help the bank compress its non-performing asset (NPA) ratio to 3.50 per cent by March-end from 3.84 per cent, as reported on September-end.

BANGALORE, Dec. 30

STATE-owned Canara Bank, backed by the new securitisation law, plans to recover Rs 500 crore of bad loans in the current financial year, the Chairman and Managing Director, Mr R.V. Shastri, has said.

Close to Rs 279 crore is likely to be recovered in the second half of the current fiscal, Mr Shastri told Business Line. "We have already reached the Rs 250-crore mark in the first half of the year and Rs 202 crore was cash recovery," he said. The spurt in bad loans recall is likely to help the bank compress its non-performing asset (NPA) ratio to 3.50 per cent by March-end from 3.84 per cent as reported on September-end. "The bank hopes to further bring down the ratio to two per cent in next three years," Mr Shastri said.

Meanwhile, the bank which recently debuted successfully with a premium issue of maiden share sell, plans to raise close to Rs 500 crore through privately placing bonds as its Tier II capital in January. The issue will help shore up its capital adequacy ratio close to 12 per cent by March-end, from the current level of 11.45 per cent, he added. The primary issue size will be Rs 400 crore, with a green-shoe option of another Rs. 100 crore.

The bank has set a target of mobilising Rs 73,500 crore under deposits and disburse Rs 38,500 crore as advances by March-end in the current fiscal.

It plans to launch Internet banking facility by February and set up 250 automated teller machines by March-end next

Canara Bank reported its April-September net profit for the current financial 2002-03 was Rs 419 crore, up 37 per cent from Rs 306 crore a year ago.

Global business of the bank grew 14.56 per cent to Rs 1,03,263 crore as on September-end, year-on-year.

While global deposits of the bank aggregated to Rs 67,734 crore, up 10.11 per cent from Rs 61,517 crore year-on- year, global advances grew 24.14 per cent to touch Rs 35,528 crore from Rs 28,619 crore from a year ago period.

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