But, the bank's net profit is likely to be better in 2000-01 - better than the Rs 236 crore clocked during 1999-2000. Under the VRS, of the total 8,600 applications received, 8,000 applications were accepted against the targeted 5,000. In effect, all the `eligible' applications were accepted. The bank's total employee strength post-VRS stands at 47,000. Further, the net NPA is expected to be less than 4 per cent for 2000-2001 - down from the previous year's level of 5.29 per cent. A 3-per cent target is likely to be set for 2001-02. The bank further announced that it had protected its capital adequacy ratio, which is expected to be 9.53 per cent for 2000-01.

Canara Bank has targeted a total business (deposits plus advances) of Rs 1,05,000 crore with Rs 68,000 crore in deposits and Rs 37,000 crore in advances for the year 2001-02. As per Canara Bank's unaudited results for the fiscal 2000-01, the bank crossed Rs 87,000 crore in total business. As on March 31, 2001, the total deposits of the bank crossed Rs 59,000 crore against the targeted Rs 55,000 crore - up Rs 11,000 crore over the previous year's figures.

But, advances saw a dip at around Rs 28,000 crore against the targeted Rs 30,000 crore as on March 31, 2001. Sources said this was due to the underutilisation of credit limits by mid-size corporates. The sources added that the 40 per cent of the total advances were given towards priority sector lending, mainly agriculture, and 12 per cent towards export credit. Also, Canara Bank had a foreign business turnover of Rs 60,000 crore during 2000-01.