Canara Bank Recovers Majority of ₹500 Crore Rajesh Exports Exposure, Focuses on Growth and Profitability

Canara Bank has successfully recovered more than 50% of its ₹500 crore exposure to Rajesh Exports and is actively pursuing legal measures to recover the remaining outstanding amount, according to the bank’s top management.

Speaking about the bank’s recovery efforts, the management indicated that significant progress has already been achieved in resolving the exposure linked to Rajesh Exports. The remaining dues are being addressed through appropriate legal channels, reflecting the bank’s continued focus on strengthening asset quality and minimizing credit risks.

Alongside recovery initiatives, Canara Bank is implementing a broader strategy aimed at enhancing profitability and improving operational efficiency. The bank’s leadership emphasized that lowering the cost-to-income ratio remains a major objective, as it directly contributes to stronger financial performance and sustainable growth.

Another critical area of focus is the expansion of low-cost deposits, particularly Current Account and Savings Account (CASA) deposits. By increasing the share of such deposits, the bank aims to reduce funding costs and offset the pressure created by rising interest expenses in a competitive deposit market.

The management noted that maintaining a healthy deposit mix is essential for preserving margins and supporting long-term profitability. With increasing competition among banks for deposits, strengthening CASA mobilization has become a strategic priority.

Canara Bank’s approach combines robust recovery efforts, prudent risk management, cost optimization, and deposit growth initiatives. These measures are expected to support the bank’s financial stability while improving operational performance in the evolving banking landscape.

Short Summary

Canara Bank has recovered more than half of its ₹500 crore exposure to Rajesh Exports and is taking legal action to recover the balance amount. The bank is also focusing on reducing its cost-to-income ratio and increasing low-cost deposits to strengthen profitability and manage rising funding costs.