State-run Canara Bank has registered an increase of 83% in its net profit, which stood at Rs 1,013 crore during the first quarter (April-June) as compared to Rs 555 crore during the same period of last year (2009-10).

Mr. A. C. Mahajan, Canara Bank chairman and managing director said, "We have posted a record net profit in the first quarter owing to nine-fold jump in income from treasury operations and net interest income (NII) growing by 34 percent YoY to Rs. 1,728 crore from Rs. 1,291 crore year ago."

The total income of the bank grew by 17% YoY to Rs 5,895 crore as against Rs 5,032 crore because of profit from treasury operations rising to Rs 224 crore from Rs 28 crore in 2009 and non-interest income surging to Rs 734 crore as against Rs 474 crore in 2009.

Operating profit also increased 61% to Rs 1,483 crore in the first quarter from Rs 921 crore year ago.

"Similarly, return on assets (RoA) increased to 1.55 percent from 1.02 percent YoY, whereas net interest margin (NIM) improved to 3.01% from 2.7% YoY," Mahajan added.

The listed bank's CAR, but, fell to 12.44% from 13.59% in 2009, as under the new regulatory norm, only annual net profit has to be factored to determine the CAR.

Cost of deposits also dropped to 5.69% in Q1 from 6.48% in 2009, as also yield on advances to 9.35% from 10.05%.

Total business registered 23.4% YoY growth to Rs 412,649 crore in Q1 from Rs 334,325 crore, with deposits increasing 23.3% YoY to Rs 238,855 crore from Rs. 193,657 crore and advances 23.6% YoY to Rs 173,794 crore. The bank has projected a credit growth of about 20% in 2010-11.

The bank was also able to limit its expenses by 7.3 percent YoY. (With Inputs from Agencies)