Well prepared for LCR, project finance guidelines

The top priority of Canara Bank in the coming quarters is to increase the provision coverage ratio (PCR) by four percentage points to 95%, something its peers have already achieved, MD and CEO K Satyanarayana Raju said.

- Anupreksha Jain

In an interview with Anupreksha Jain, he says the bank is more than prepared for guidelines on liquidity coverage ratio (LCR), expected credit loss (ECL) and project finance, and will rewrite its strategy to be insulated from any kind of impact. Excerpts:

Canara Bank's net profit for Q3FY25 was up by just 12%. What were the factors behind this flat growth rate?

Our main focus is to strengthen the balance sheet because all our peer banks have crossed 95% in their PCR (a measurement of a bank's ability to offset losses from non-performing assets) whereas we are still at 91%. That's why we are providing enough provisions, even if it is not required. As a result, our net profit has been flat. Our target is to reach 95% in the coming quarters. Moreover, our focus is on growing operating profit, which is rising adequately.

Are there chances of further moderation in profit in the coming quarters?