KOLKATA: State-owned Canara Bank is likely to seek board approval for Rs 9,000 crore capital raising through a combination of additional tier-1 and tier-2 bonds while the lender has no equity expansion plan this fiscal.
“Our existing capital is good enough to support a 10% credit growth this fiscal. However, we are firming up a capital plan as it’s always better to prepare for the future,” managing director LV Prabhakar said Friday after announcing a 65% rise in net profit for the quarter ending March 31.
The bank’s capital adequacy ratio stood at 14.9% at the end of March.
The lender has set its overall loan growth target at 8% while it envisaged a 10% retail loan expansion. Its loan book in the last fiscal grew 9.77% to Rs 7.41 lakh crore.
Its net profit for the reporting quarter was at Rs 1666 crore against Rs Rs 1011 crore in the year-ago period.
Net interest margin for FY22 improved 6 basis points to 2.82%. The bank looks to achieve 2.9% NIM this fiscal.
Operating profit rose 19% to Rs 6202 crore against Rs 5221 crore. Total provision was at Rs 3709 crore against Rs 3652 crore while provisions against bad loans were 52% lower at Rs 2130 crore against Rs 4428 crore in line with the improvement in asset quality.
Gross non-performing assets ratio improved 142 basis points to 7.51% at the end of March from 8.93% a year back while net NPA stood at 2.65% against 3.82% for the same period.
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