In order to prevent the increasing trend of delinquencies in the state of Kerala, Canara Bank has proposed insurance-linked education and agriculture loan products. The proposal came up during discussions of R.K. Dubey, Chairman and Managing Director of the bank with Chief Minister Oommen Chandy, where the latter had sought bankers’ aid in sorting out the issues surrounding education loan disbursements in the State.
Although, the bank responded positively to the State’s chief Minister request, but has sought latter’s help with recoveries. The bank exuded its worries over more and more educational loans turning into default even as Kerala State has come to account for 13 to 14 per cent of all such loans disbursed in the country as a whole.
The bank has reported 18.85% fall in its net profit at Rs 710.51 crore for third quarter ended December 31, 2012 as compared to Rs 875.56 crore for the same quarter in the previous year. However, total income of the bank has increased by 9.51% at Rs 9390.29 crore for quarter under review as compared to Rs 8574.45 crore for the quarter ended December 31, 2011.
