Our only concern is CASA is not growing the way the other deposits are going up: K Satyanarayana Raju, Canara Bank

economictimes.indiatimes.com:

K Satyanarayana Raju, MD & CEO, Canara Bank, says they have grown CASA at 5.05%, but in the current quarter whatever growth they targeted for deposits, the same growth they want reflected in the CASA also, so that CASA growth year-on-year at least will touch 8% while deposits will grow at 8-8.5%.

Raju further said, “Our only concern is CASA is not growing the way the other deposits are going. That is why there is a special campaign that we have started from 1st January onwards with special incentives to all the outlets.”

ET Now: This quarter reported a dip in your pre-provisioning profitability by almost 2%. What was the reason for it? Was it one-off in nature? Your employee costs have surged and cost to income also have surged. Is it likely to remain elevated or do you expect it to normalise going forward?

K Satyanarayana Raju: It is not a continuous system, it is a one-time measure. Actually, you might be aware that the Employees Association and the IBA has entered into an agreement for wage revision once every five years. The latest agreement is due from the 1st November 2022. So, in the last 14 months, we were providing for it in anticipation of it. The incremental wage revision will happen at around 14% to 15%. But when we realised that recently that wage agreement was concluded with a 17% growth rate, from November 2022 to December 2023, for 14 months, we calculated it at 17% and what we have already provided and minus whatever is the difference. The entire Rs 700 crore has been provided now.

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