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Aside from introducing new targeted CASA products, the bank is looking to rationalise and optimise its network and operations before planning an expansion.
State-owned Canara Bank on Monday reported a 75 per cent rise in net profit at Rs 3,535 crore for the June quarter, helped by a decline in bad loans and growth in interest income.
The Bengaluru-based lender had posted a net profit of Rs 2,022 crore in the year-ago period.
Total income
Canara Bank CEO K Satyanarayana Raju said the bank is confident of maintaining a Net Interest Margin (NIM) of around 3% for the current financial year, despite higher interest expenses. He said around 52% of its portfolio is MCR-linked, which is providing good interest yields on advances. Raju added that while the cost of funds had peaked in the current quarter, the bank was focussing on its Current Account Savings Account (CASA), which has contributed Rs 3.3bn ($45m) in the last four months.