CRISIL
'AAA' for Canara Bank Bonds
Our
Banking Bureau
5 February 2005
| Rs5.0 billion
Bonds issue |
AAA/Stable
|
| Rs4.5 billion
Bonds issue |
AAA/Stable
(Reaffirmed) |
CRISIL
has given Canara Bank's bond issues an 'AAA' rating,
reflecting its strong market position, comfortable resources
profile and good earnings level vis-à-vis its
peers, as well as the strong support available from
the government of India (GoI) to public sector banks
in general. Canara Bank is the third-largest bank in
the country in terms of deposits and the fourth-largest
bank in terms of assets. Though its capitalisation indicators
are moderate, its asset quality continues to be better
than its peers, in spite of slippage levels being high
since FY03.
Canara
Bank has a market share of over 5 per cent each in deposits,
advances and assets of all scheduled commercial banks,
as well as a pan-India presence with over 2,500 branches,
giving it a strong retail deposit base. It also has
an overseas branch in London, a wholly owned subsidiary
in Hong Kong to accept deposits and undertake trade-financing
activities and a banking company in Russia in partnership
with SBI. As at March 31, 2004, Canara Bank had an asset
base of Rs995.39 billion and a deposit base of Rs863.44
billion. It reported a net profit (PAT) of Rs13.38 billion
in FY04 and Rs10.07 billion in the first nine months
of FY05.
Outlook:
The GoI will continue to support all public sector banks.
CRISIL also believes that Canara Bank will maintain
its strong
