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India : CANARA BANK may offload bad loans of Rs 900-cr to ARCs after selling Rs 600-cr in first quarter

August 22, 2014

The Public Sector banking player Canara Bank has announced its plans to sell bad loans worth Rs 900 crore to asset reconstruction companies (ARCs).

The lender had sold bad loans of Rs 600 crore and Rs 1,300 crore respectively during the first quarter of this fiscal year (FY2014-15) and the last quarter of previous fiscal year (FY2013-14). Canara Bank, a leading player in the south Indian banking space, had reported gross NPA of 2.67% for the first quarter of the current fiscal as against 2.67% in Q1, FY2013-14.

The nationalized bank is planning to reduce its non-performing assets ratio to 2% by next March.

The State-run bank, in the interim, has requested the Central Government for funds of Rs 500 crore and plans to raise Rs 3,000 crore from qualified institutional investors as soon as it receives clearance from the Government.

The Bangalore-based PSU lender has revealed that it has recorded net profit of Rs 806.86 crore during the April-June quarter of the current fiscal ended June 30, 2014, up 1.86% from the same period last fiscal year s figure of Rs 792.07 crore.

The bank has reported 11.61% growth in its total income during the reviewed quarter to Rs 11728.01 crore, as against Rs 10507.88 crore in Q1, FY2013-14.

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Source: TendersInfo (India)

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