Canara Bank will continue to focus on individual deposits from savings banks. | Photo: Wikimedia Commons
Improving CASA or low-cost deposit mobilisation is the focus area of Canara Bank and efforts in that direction are yielding results, said its Managing Director K Satyanarayana Raju.
“Current Savings Accounts (CASA) accounted for 31 per cent of the total deposits and the target is to increase it to 33 per cent by the end of the current fiscal year,” he told PTI.
Rapid growth in current accounts cannot be expected, and another challenge is to maintain them in the long term as companies tend to quickly move them into term deposits, he said.
On savings, he said, “Our initiatives have started yielding results. One can see the accumulation and creation of deposits. From June to June, if you look at it, there is an improvement of Rs 12,000 crore.”
The bank will continue to focus on individual savings bank deposits by introducing unique and innovative products, he added.
On business growth, he said the bank has given a target of 10 per cent for the current financial year, against which there was 11 per cent growth in the first quarter ended June.
Credit growth has been estimated at 10 percent, he said.
“I am fully confident that we will grow beyond 11-12 percent in the next three quarters.”
The bank expects gross NPA to be around 3.5 per cent while net NPA will be 1.10 per cent of total advances at the end of the current financial year.
For the first quarter ended June, state-run Canara Bank posted a 10 per cent rise in net profit to Rs 3,905 crore from Rs 3,535 crore in the same period a year ago.
During the quarter, the bank’s total income increased to Rs 34,020 crore from Rs 29,823 crore a year ago. Interest income grew to Rs 28,701 crore during the period under review as compared to Rs 25,004 crore in the corresponding quarter a year ago.
First published: August 18, 2024 | 14:25 IS
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