Canara Bank Targets Rs 6,000 Crore Recovery Amid Strategic Financial Moves

Canara Bank plans to recover Rs 6,000 crore from bad loans in the fiscal's second half, targeting Rs 3,000 crore each in Q3 and Q4. The bank's IPO for Canara Robeco AMC is expected in Q4. Infrastructure bonds worth Rs 10,000 crore were raised in July.

Canara Bank, a state-owned lender, is setting ambitious recovery targets of Rs 6,000 crore for bad loans throughout the fiscal year's second half. Managing Director and CEO K Satyanarayana Raju revealed these plans, aiming for Rs 3,000 crore recovery in both the third and fourth quarters.

The bank has already achieved a recovery of Rs 2,905 crore in the second quarter. Raju noted that the anticipated slippages would remain low as the bank pursues underwriting robust loans. Meanwhile, Canara Robeco Asset Management Company's IPO may take place in Q4, pending finance ministry approval.

Additionally, the bank previously raised Rs 10,000 crore through infrastructure bonds in July and is deploying these funds strategically. Currently, there is no intention to pursue additional long-term infra bonds within this fiscal. Canara Bank also reported an 11% increase in net profit for Q2, rising to Rs 4,015 crore from Rs 3,606 crore in the same period last year.

(With inputs from agencies.)