ICRA assigns ‘A1+’ rating to certificate of deposit programme of Canara Bank

Credit rating agency, ICRA has assigned the ‘A1+’ rating to the Rs 50,000 crore certificate of deposit programme of Canara Bank. The rating agency has an ‘AAA’ rating with a Stable Outlook on the Rs 4,075 crore Lower Tier-II bonds programmes of Canara Bank. Further, the rating agency has the ‘AAA (hyb)’ rating with a stable outlook to the Rs 2500 crore Basel-III compliant Tier-II bond programme of the Bank. The rating factors in the majority Government of India (GOI) shareholding, which provides a strong likelihood of sovereign support to the bank; coupled with the bank’s systemic importance, its established franchise, healthy business growth and adequate capitalisation profile. Canara Bank posted a fall of 15.79% in its net profit at Rs 610.83 crore for the quarter ended March 31, 2014, as compared to Rs 725.38 crore for the same quarter in the previous year. However, total income of the bank increased by 22.57% at Rs 11609.72 crore for quarter under review as compared to Rs 9471.57 crore for the quarter ended March 31, 2013.