Canara Bank Q3 Net profit rises 27%

 

Public sector lender Canara Bank on January 24 reported a net profit of Rs 3656 crore for the October-December quarter of financial year (FY) 2023-24 beating the estimates of Rs. 3,524.5 crore.

The lender marks a 26.87 percent jump in net profit as compared to Rs 2881.52 crore clocked in the year-ago period.

The bank's gross non-performing asset (NPA) stood at 4.39 percent, down from 5.89 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 1.32 percent, improving from 1.96 percent on a year-on-year basis.

Shares of the lender closed for trading nearly 2.22 percent down at Rs 448 apiece on BSE.

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Canara Bank Q2 Net profit zooms 43% YoY

 

Public sector lender Canara Bank on October 26 reported a net profit of Rs 3,606 crore for the July-September quarter of FY24, up 43 percent from the year-ago period.

The lender's net interest income (NII) came in at Rs 8,903 crore, 19 percent higher from the the corresponding quarter of the previous fiscal.

The bank's gross non-performing asset (NPA) stood at 4.76 percent, down from 6.37 percent in year-ago period. Net NPA for the quarter improved to 1.41 percent from 2.19 percent in the year-ago period.

Deposit of the bank stood at Rs 11.43 lakh crore growing by 8.22 percent and domestic advances stood at Rs 8.78 lakh crore growing by 12.59 percent.

The lender's RAM credit grew by 13.63 percent to Rs 5.16 lakh crore and constitutes 56 percent of the total advances. Retail credit grew by 10.56 percent with housing loan growth at 12.32 percent and education Loan grew by 14.68 percent whereas vehicle loan grew by 9.29 percent.

The bank's retail portfolio increased to Rs 1.48 lakh crore and grew by 10.56 percent. Housing loan portfolio increased by 12.32 percent to Rs 88,564 crore and advances to agriculture grew by 20.54 percent to Rs 2.36 lakh crore.

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Canara Bank Q1 results: Net profit jumps 75% YoY ; asset quality improves

Canara Bank on July 24 reported a 74.8 percent year-on-year (YoY) rise in profit after tax at Rs 3,534.84 crore in the first quarter of the current financial year, boosted by an increase in net interest income and improvement in interest margins and asset quality.

The state-owned lender reported a net profit of Rs 2,022.03 crore in the year-ago period.

The Bengaluru-headquartered lender's assets quality improved in the June quarter, with gross non-performing assets (NPAs) ratio at 5.15 percent against 5.35 percent in the previous quarter and 6.98 percent in the year-ago period.

The net NPA ratio stood at 1.57 percent, better than 1.73 percent in the previous quarter and 2.48 percent in the year-ago period.

The improvement in asset quality is beneficial to a bank as fewer risky assets tend to bring down the outstanding risk-weighted assets, saving the capital for the lender.

In absolute terms, the bank's gross NPA stood at Rs 45,727 crore as on June 30, against Rs 54,734 crore in the year-ago period. The net NPA too was down at Rs 13,461 crore from Rs 18,505 crore.

In the reporting quarter, the net interest income, the difference between the interest earned on loans and paid to depositors, rose 27.72 percent on-year to Rs 8,666 crore.

The total interest income of the bank was Rs 25,004 crore in the April-June quarter, up from Rs 18,177 crore in a year ago period.

The net interest margin, an important profitability marker, was at 3.05 percent, up from 2.95 percent in the previous quarter and 2.78 percent in a year-ago period.

The global deposits of the bank rose 6.65 percent on-year to Rs 11.92 lakh crore, while domestic deposits were up 4.9 percent on-year to Rs 11.05 lakh crore.

in April-June, term deposits of state-owned lender rose 6.98 percent to Rs 7.04 lakh crore.

On the advances front, global gross advances surged 13.27 percent on-year to Rs 8.88 lakh crore and domestic gross advances rose 12.69 percent on-year to Rs 8.18 lakh crore.

In April-June, Canara Bank reported a 71.01 percent on-year fall in its treasury income to Rs 536 crore. In treasury income, profit on exchange transactions halved 75.21 percent on-year to Rs 236 crore and profit on sale of investment fell 66.93 percent on-year to Rs 294 crore, according to the investors presentation.

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Canara Bank Q4 Results: Net profit zooms 90% YoY

 

Canara Bank on Monday reported March quarter net profit at Rs 3,175 crore, up 90% year-on-year (YoY). The figure stood at Rs 1,666 crore in the same quarter last year.

Net interest income (NII), the difference between interest earned and interest expended, grew 23% YoY to Rs 8,616 crore for the fourth quarter under review. It was Rs 7,006 crore in the corresponding quarter of last year.

The lender's operating profit stood at Rs 7,252 crore during the March quarter, registering a growth of 17% YoY.

Canara Bank improved its asset quality over a year ago period as gross non-performing assets (GNPA) ratio reduced to 5.35% in the March quarter, down from 5.89% at the end of March 2022.

Net non-performing assets (NNPA) ratio has also declined to 1.73% as of March 2023 from 2.65% as of March 2022.

The bank's provision coverage ratio (PCR) stood at 87.31% at the end of March quarter as against 84.17% in the last year quarter.

On the operational front, the global business increased by 12% YoY to Rs 20.41 lakh crore as at March 2023 with global deposits at Rs 11.79 lakh crore.

Domestic deposits of the bank stood at Rs 10.94 lakh crore at the end of the quarter, showing a growth of 6% YoY.

While the retail lending portfolio increased by 11% YoY to Rs 1.4 lakh crore, housing loans jumped 14% YoY to Rs 84,364 crore.

The bank's capital adequacy was at 16.68% as of March 2023, including tier-I of 13.78%.

The lender's Board has recommended a dividend of Rs 12 per equity share (i.e., 120%) of face value of Rs 10 each to the shareholders for the financial year 2022-23.

The lender has 9,706 branches as of the March quarter, out of which 3048 are rural, 2742 semi-urban, 1991 urban and 1925 metro along with 10726 ATMs.

Considering the bank’s performance, the board has decided to pay 15 days' salary as performance-linked incentive (PLI) to the employees.

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Canara Bank Q1 net profit up 71.8% YoY on higher interest income

Canara Bank’s net profit grew by 71.8 per cent year on year (YoY) to Rs 2,022 crore in the quarter ended June (Q1FY23) on the back of a rise in its net interest income (NII) and other income.

The Bengaluru-based public sector lender had posted a net profit of Rs 1,177 crore during the same period last year (Q1FY22). Sequentially, its net profit rose 21.4 per cent from Rs 1,666 crore in Q4FY22.

Its net interest income (NII) was up 10.15 per cent in Q1FY23 to Rs 6,785 crore from Rs 6,160 crore in Q1FY22. However, it was down 3.14 per cent sequentially, from Rs 7,005 crore in the March 2022 quarter. Its NIM improved to 2.78 per cent in Q1FY23 from 2.71 per cent a year ago. However, it fell from 2.82 per cent in March 2022.

The bank said in a filing with the BSE that its NIM was expected to be about 3.0 per cent in the current financial year.

Its non-interest income rose 24.55 per cent YoY to Rs 5,175 crore in Q1FY23, from Rs 4,155 crore in Q1FY22. It also rose sequentially from Rs 4,462 crore in Q4FY22.

Despite hardening of bond yields, the treasury income, which is part of other income, rose by 46.17 per cent YoY to Rs 1,849 crore in Q1Fy23 from Rs 1,265 crore in Q1Fy22. Sequentially, the treasury income was up 32.64 per cent from Rs 1,394 crore in March 2022.

The bank’s asset quality profile improved with gross non-performing assets (GNPAs) at 6.98 per cent till June 2022 from 8.5 per cent in the year-ago quarter. Net NPAs dipped to 2.48 per cent from 3.46 per cent a year ago.

NPA provisions rose to Rs 2,673 crore in Q1FY23 from Rs 2,334 crore in Q1FY22. The provision coverage ratio rose to 84.51 per cent for the quarter under review from 81.18 per cent a year ago.

The bank’s loan book grew 14.47 per cent YoY, on par with the rate at which the banking system’s loan book expanded (14.4 per cent YoY) in June 2022. The outstanding advances stood at Rs 7.83 trillion as of June 2022.

The deposits grew by 9.42 per cent YoY to Rs 11.18 trillion in June 2022. The credit-to-deposit ratio was 70.09 per cent at the end of June 2022 up from 67 per cent a year ago.

The bank’s total capital adequacy ratio (CAR) stood at 14.91 per cent in June 2022, up from 13.36 per cent in June 2021.

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Six Indian banks sue GVK for Rs 12,114 crore: Report

Six Indian banks are reportedly suing the GVK Group for $1.5 billion or Rs 12,114 crore, according to the Times of India. The six banks include Bank of Baroda, Bank of India, Canara Bank , Icici Bank , Indian Overseas Bank, and Axis Bank.

According to the report, GVK defaulted on a $1-billion loan and a $35-million letter of credit facility given by banks in 2011, and a $160-million loan lent in 2014.

GVK Coal Developers (Singapore) and nine other GVK Group companies are being sued in the case which opens Monday.

As per the banks, GVK failed to make repayments as they fell due and failed to obtain a mining lease in the Alpha project in Queensland, Australia by December 31, 2012, which was a project milestone that had to be satisfied. The banks reportedly asked GVK in November 2020 to cancel the agreement and requested repayment. But neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.

On the other hand, GVK argued that "the loans was to provide part funding for the acquisition of the Hancock companies in Australia to develop their assets — including the Alpha project — into working coal mines".

“The deterioration in the market for coal, the lack of third-party investment, legal challenges to the mining projects in the courts of Queensland, meant that very little progress was made to develop the mining assets,” GVK states. GVK states it could not obtain the mining lease owing to litigation by environmental groups but denies this was a “default”.

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Canara Bank Q4 Net profit more than doubles

 

Canara Bank on Friday reported a 65 percent jump in its standalone net profit at Rs 1,666.22 crore for the quarter ended March 2022.

The Bengaluru-headquartered bank had posted a net profit of Rs 1,010.87 crore in the same quarter a year ago.

Total income of the bank in the January-March period of 2021-22 rose to Rs 22,323.11 crore, from Rs 21,040.63 crore in the same period of 2020-21, Canara Bank said in a regulatory filing.

On the asset quality front, the bank's gross non-performing assets (NPAs) or bad loans fell to 7.51 percent of the gross advances at the end of March 2022, as against 8.93 percent at the end of March 2021.

In value terms, the gross NPAs were worth Rs 55,651.58 crore, down from Rs 60,287.84 crore.

Net NPAs also got better at 2.65 percent (Rs 18,668.02 crore) in the quarter under review, from 3.82 percent (Rs 24,442.07 crore).

Provisions and contingencies for the quarter were higher at Rs 3,708.68 crore, as against Rs 3,652.18 crore put aside for the year-ago period. Of this, the provision for bad loans stood at Rs 2,129.73 crore for Q4FY22.

For full-year FY22, the bank reported a more than doubling of its standalone net profit at Rs 5,678.42 crore, as against Rs 2,557.58 crore in FY21.

Total income during the year grew to Rs 85,907.15 crore, from Rs 84,204.78 crore.

The board of the bank has recommended a dividend of Rs 6.50 per equity share for the year 2021-22, the lender said. It is subject to the approval of shareholders at the bank's ensuing annual general meeting.

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Canara Bank Q3 Net profit jumps over two-fold

 A fall in total provisions and recovery from bad loans helped state-owned Canara Bank more than double its net profit to Rs 1502 crore for the December quarter even as provision toward fresh bad debt rose marginally.

The bank reported a net profit at Rs 696 crore in the year ago period.

Net interest margin, a key profitability parameter, rose to 2.83 per cent for the December quarter from 2.72 per cent in the year ago period. The bank's net interest income rose 14 per cent year-on-year at Rs 6,946 crore.

Managing director LV Prabhakar sounded confident on bettering asset quality going forward as stressed loans account for merely 1.76 per cent of total portfolio. Stressed loans had accounted for 3.63 per cent of the total portfolio in the year-ago period.

Its asset quality deteriorated when compared to the December 2020 quarter but improved sequentially. Gross non-performing assets (GNPA) ratio was at 7.8 per cent, as compared with 7.46 per cent a year back. Gross NPA was 8.42 per cent at the end of September. Net NPA ratio was at 2.86 per cent against 2.64 per cent at the end of December 2020 and 3.21 per cent as on September 20, 2021.

The bank recovered Rs 2,784 crore in the December quarter from bad loans as well as written off accounts, as compared with Rs 2,893 crore in the year back period.

The bank's operating profit rose 10 per cent at Rs 5,803 crore against Rs 5,267 crore over the same period while total provision dipped 47 per cent at Rs 2,245 crore from Rs 4,210 crore helping the sharp rise in net profit. Provisions to cover bad loans were Rs 2,705 crore against Rs 2658 crore in the corresponding quarter in 2020.

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Canara Bank Q2 Net profit jumps three times

 

State-owned Canara Bank reported a three-times rise in net profit at Rs 1,333 crore for the September quarter, riding on treasury and non-interest income and higher cash recovery.

The bank’s net profit was Rs 444 crore in the year-ago period.

Its net interest margin (NIM), a key profitability parameter, however, dipped to 2.72% in the quarter under review from 2.82% in the same period last year. Net interest income (NII) was a shade lower at Rs 6,273 crore from Rs 6,305 crore while total income rose a slim 2.6% at Rs 21,331 crore.

Its operating profit grew 22% to Rs 5,604 crore as against Rs 4,597 crore. Treasury income jumped 95% to Rs 1,754 crore while non-interest Income rose 37.5% at Rs 4,268 crore. Provision to cover bad loans fell 24% at Rs 2678 crore with improvement in recovery of loans that were already covered.

Bank chief executive LV Prabhakar expects corporate loans to grow at 7.5% for the full year despite muted demand so far, raising hopes of pick up in industrial activities. He expects retail loans to continue to grow by over 10%.

Canara’s gross advances grew 5.8% year-on-year (YoY) to Rs 6.87 lakh crore while the corporate loan portfolio rose 2.2% to Rs 2.96 lakh crore. The retail lending book rose 10.46% to Rs 1.19 lakh crore.

The lender’s asset quality improved sequentially, with gross non-performing assets (NPA) ratio falling to 8.42% at the end of September from 8.5% three months back. Net NPA stood at 3.21% as against 3.46%.

Prabhakar said the bank with 14.37% capital adequacy is comfortably placed for growth and meeting regulations. The lender has just recently raised Rs 1,500 crore in AT-1 capital while the board has approved raising another 2500 crore each in AT-1 bonds and tier-2 bonds. It raised Rs 2500 crore through share sales during this quarter.

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Canara Bank Q1 results: Net profit rises nearly three-fold

Public sector lender Canara Bank’s net profit nearly tripled to Rs 1,177 crore at the end of the June quarter on a sharp rise in fee income and treasury gains. The lender reported a net profit of Rs 406 crore in the year-ago period.Non-interest income, including fees and treasury gains, rose 67.5% year-on-year to Rs 4,438 crore.Net interest income was flat at Rs 6,147 from Rs 6,096 last year.

Asset quality improved with the gross NPA ratio at 8.5% during the quarter from 8.84% a year ago. The net NPA ratio stood at 3.46% from 3.95%. Total provisions rose nearly 18% year-on-year to Rs 4,574 crore at the end of the June quarter. This included a one-time income tax provision of Rs 845 crore. The bank also holds Covid-related provisions of Rs 842 crore.

The bank reported Rs 4,253 crore of fresh slippages, which fell sharply on a sequential basis. Around 19% of slippages came from the retail segment and 56% from MSMEs. Loans worth Rs 13,234 crore were restructured under the Covid 2.0 scheme, of which Rs 7,610 crore were from the retail sector and Rs 3,331 crore from MSMEs.

“For the retail and MSMEs borrowers who we have assisted with the Covid recast scheme a part of them have started to pre-pay and we are hopeful that as the business momentum recovers a large part of these accounts will normalise,” said LV Prabhakar, managing director, Canara Bank. “As of June 30, our collection efficiency is 91%.”

Net interest margin for the quarter fell to 2.71% from 2.84% a year ago. Total loans grew by 5.94% to Rs 6.6 lakh crore, of which retail loans grew at 9.57% while agriculture loans rose 17.03%. The bank said it is targeting an annual credit growth rate of 7-8%.

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Canara Bank Q4 result: reports net profit

 

Canara Bank swung to profit in March quarter as it reported a net profit of Rs.1,011 crore in Q4FY21 as compared to Rs.3,259 crore of net loss posted in the same quarter last year. The bank's net interest income (NII) rose 68.4% to Rs.5,589 crore as against Rs.3,318 crore year-on-year (YoY).

The asset quality deteriorated as the gross non-performing assets (NPA) stood at 8.93% versus 7.46% on a sequential basis while the net NPAs stood at 3.82% as compared to 2.64%. Provisions and contingencies fell to Rs.4,134 crore from Rs.5,375.38 crore on a yearly basis.

Canara Bank's other income in Q4 jumped to Rs.5,207 crore from Rs.2,174.95 in the corresponding quarter of the previous fiscal.

The bank said that the ongoing Covid situation continues to be uncertain and it is evaluating the situation on an ongoing basis. The major identified challenges for the Bank would arise from eroding cash flows and extended capital cycles.

Despite the challenges, the management believes that no adjustments are required in the financial results as it does not significantly impact the current quarter. Despite these events and conditions, there would not be any significant impact on Bank's results in future and going concern assumptions as at presently made, it ad.

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Canara Bank Q3 standalone net profit dips 9%

State-run Canara Bank on Wednesday reported a 9 per cent decline in its standalone net profit to Rs 696 crore on higher provisioning.

The bank amalgamated Syndicate Bank with itself effective April 1, 2020. The financials as of December 2019, March, June and September 2020 are combined figures of both banks, the bank said in its investors presentation.

The amalgamated entity had posted a standalone profit after tax of Rs 764 crore in the December quarter of the previous fiscal. The pre-amalgamation standalone profit in Q3 FY21 stood at Rs 329.62 crore. The bank further reported a consolidated net profit of Rs 739.20 crore in the third quarter ended December of the current fiscal as against Rs 406.43 crore during the year-ago period. However, the consolidated profit of Q3FY21 is not comparable year-on-year.

"We want to make our balance sheet very strong and it should be future ready," the bank's managing director and CEO L V Prabhakar told reporters.

The bank has an additional provisioning of Rs 1,901 crore as of today. In Q3, it did Rs 738 crore of floating provision. Apart from that, it has not recognised Rs 413 crore of interest on probable NPA. If it had added both of these, the profit could have gone more than Rs 1,500 crore, he stated.

Net-interest income grew by 14.58 per cent to Rs 6,081 crore as against Rs 5,307 crore. Its domestic net interest margins improved 26 bps.

The lender reported a 210 per cent growth in its treasury income at Rs 2,016 crore as against Rs 650 crore in the same quarter of the previous fiscal.

"The mix of the securities which we have has given us the leverage encash the situation and to book profit. We have a robust risk management system and it has helped us," he said.

Gross non-performing assets (GNPA) ratio reduced to 7.46 per cent from 9.82 per cent last year. Net NPAs also declined to 2.64 per cent from 5.62 per cent.

Prabhakar expects GNPA to be at 8.75 per cent and net NPA at 3.90 per cent by March-end.

Fresh slippages in the quarter stood at Rs 395 crore. Total cash recovery including recovery from written-off accounts stood at Rs 2,893 crore.

The lender expects recoveries worth Rs 6,000-7,000 crore in the fourth quarter, he said.

Prabhakar said the lender's one-time restructuring book stands at Rs 11,000 crore.

Provision coverage ratio (PCR) improved to 84.89 per cent from 70.37 per cent in the same quarter of the previous fiscal.

Its capital adequacy ratio (CRAR) stood at 13.69 per cent as at December 2020. Out of which tier-I is 10.45 per cent and tier-II is 3.24 per cent.

Its domestic advances grew 7.55 per cent to Rs 644,826 crore, and its retail lending portfolio increased by 9.33 per cent to Rs 113,835 crore.

The bank's domestic deposit rose 9.49 per cent to Rs 928,325 crore.

It expects a deposit growth of 8 per cent and credit growth of 6 per cent by the end of this fiscal.

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Canara Bank’s Q2 profit up 5.31%

 State-owned Canara Bank on Thursday reported a standalone net profit of Rs 444.41 crore for the three months to September. The lender had posted a net profit of Rs 364.92 crore during the same quarter of the previous fiscal year.

Total income (standalone) of the bank stood at Rs 20,836.71 crore in July-September period of 2020-21, as against Rs 14,461.73 crore in the same quarter of 2020-19, it said in a regulatory filing.

It further said the figures of September 2019 and March 2020 are related to standalone Canara Bank financials of pre-amalgamation period, and thus are not comparable with post-amalgamation financials of June 2020 and September 2020.

Canara Bank amalgamated Syndicate Bank with itself with effect from April 1, 2020.

Canara Bank's gross non-performing assets (NPAs) fell marginally to 8.23 per cent of the gross advances as of September 30, 2020, as against 8.68 per cent by end of September 2019.

In value terms, the gross NPAs or bad loans were at Rs 53,437.92 crore, up from Rs 38,711.33 crore.

Net NPAs fell substantially to 3.42 per cent (Rs 21,063.28 crore) from 5.15 per cent (Rs 22,090.04 crore).

Provisions for bad loans and contingencies for the reported quarter rose to Rs 4,016.81 crore as against Rs 2,037.97 crore.

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Canara bank Q1 net profit jumps 23%

 

Canara Bank on Wednesday reported 23.5% rise in standalone net profit at Rs.406.24 crore for June quarter 2020-21.

The public sector lender logged a net profit of Rs.329.07 crore in the same quarter of the previous financial year.Canara Bank, which amalgamated Syndicate Bank into itself with effect from April 1, 2020, however, said the earning figures are not comparable as these are related to standalone financials for pre-amalgamation period.

Total income in April-June 2020-21 increased to ₹20,685.91 crore from Rs.14,062.39 crore in the year-ago period, Canara Bank said in a regulatory filing.The bank's gross non-performing assets (NPAs) were up slightly at 8.84% of the gross advances as on June 30, 2020 as against 8.77% at June-end last year.

In absolute value, gross NPAs or bad loans stood at ₹57,525.52 crore as against ₹39,399.02 crore by the year-ago same period.Net NPA ratio, however, fell to 3.95% ( ₹24,355.23 crore) from 5.35% ( ₹23,149.62 crore).Provisions and contingencies for the first quarter were raised to ₹3,826.34 crore as compared to ₹1,899.13 crore in the year-ago period.

Of this, provisions for NPAs stood at ₹3,549.99 crore as against ₹2,282.70 crore a year ago.

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Overall Comparison of Top 8 Banks in India

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Canara Bank Q4 result, net loss widens

State-owned Canara Bank on Wednesday reported widening of its standalone net loss to Rs 3,259.33 crore for the fourth quarter ended March 2020.

The bank had registered a net loss of Rs 551.53 crore during the corresponding January-March 2019 quarter.

However, income on a standalone basis during January-March rose to Rs 14,222.39 crore, compared with Rs 14,000.43 crore in the year-ago period, Canara Bank said in a regulatory filing.

The lender made a huge provisioning of Rs 5,375.38 crore for the March 2020 quarter, even as it was lower than the Rs 5,523.50 crore parked aside for corresponding period of 2018-19.

For the full year 2019-20, there was a loss of Rs 2,235.72 crore during 2019-20. The public sector bank had posted a net profit of Rs 347.02 crore in 2018-19.

On asset quality, gross non-performing assets (NPAs) continued to remain at an elevated level of 8.21 per cent at the end of March 2020, slightly better than 8.83 per cent by the end of March 2019.

In value terms, the gross NPAs or bad loans of the bank stood at Rs 37,041.15 crore as on March 31, 2020, vis-a-vis Rs 39,224.12 crore in the year-ago period.

Net NPAs were, however, trimmed substantially to 4.22 per cent (Rs 18,250.95 crore) from 5.37 per cent (Rs 22,955.11 crore).

Provision coverage ratio as on March 31, 2020, stood at 75.86 per cent, compared with 70.97 per cent as on December 31, 2019, and 68.13 per cent as on March 31, 2019, it said.

The amalgamation of Syndicate Bank into Canara Bank was effected on April 1, 2020. In this connection, the Reserve Bank of India, with a view to obviating future build-up of stresses in the bank, advised Canara Bank to ensure a harmonisation provision as on March 31, 2020, with respect to the impact of divergence in asset classification across both the banks, it said.

Accordingly, based on the harmonisation process carried out by Canara Bank, the bank made the changes in asset classification and provisioning as per extant norms as at the year-end.

"The harmonisation process as above has resulted in increase in gross NPA by Rs 532.63 crore and increase in NPA provision by Rs 340 crore during the year ended on March 31, 2020," Canara Bank said.

Further, the Bengaluru-headquartered lender said it has availed option for deferment of provision in respect of frauds reported for Rs 2,349.59 crore requiring additional provision of Rs 1,989.26 crore in terms of option available as per the RBI circular.

Accordingly, an amount of Rs 497.31 crore has been charged to profit and loss account and an amount of Rs 1,491.95 crore have been charged to reserves and deferred for adjustment in subsequent quarters, it added.

On COVID-19, it said that due to lockdown impact on economy, the situation continues to be uncertain and the bank is evaluating the situation on an ongoing basis.

"The major identified challenges for the bank would arise from eroding cash flows and extended capital cycles. The bank is gearing itself on all the fronts to meet these challenges. The management believes that no adjustments are required in the financial results as it does not significantly impact the current financial year," it said.

Despite these events and conditions, there would not be any significant impact on the bank's results in future and going concern assumptions as at presently made, it added

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Top Public Sector Banks In India 2020

These banks have emerged to be trusted brands where people deposit and invest money without thinking twice. Some of these banks stand out when it comes to offering services and are thus a preferred choice of greater number of people.

Here is a look at some of the best public sector banks in India.

1] State Bank of India 

Commonly known as SBI, this bank was set up in the year 1955. It is one of the oldest and the most trusted public sector banks in India. SBI is owned by the Indian government. It offers all kinds of banking services and is known for maintaining transparency in its dealings. It boasts of more than 40 crore satisfied customers.

After receiving an overwhelming response from people in India, the bank went on to open its branches worldwide. Today, it has nearly 200 offices in 36 different countries.  The headquarters of SBI are located in Mumbai.

2] Bank of India

This bank was established in the year 1906 as a privately owned entity. However, after the nationalization of banks, it became a public sector bank. This change took place back in 1969. The bank has 5,500 branches operating across the country. 

It has been serving millions of Indians by catering to their banking requirements.The bank also has its branches outside the country. It operates in 22 other countries with around 60 branches. New York, Paris, London and Singapore are among the countries where Bank of India has its branches.

3] Punjab National Bank

This bank came into being in the year 1895. It was founded under the guidance of one of the greatest Indian leaders of all times, Lala Lajpat Rai. The bank was established as a part of the Swadeshi movement. PNB was managed solely by Indians.

It became extremely popular in the pre-independence era and is still trusted as much. It offers several banking services and is known for providing quality banking products. The bank has around 7000 branches and has its presence in every nook and corner of the country.

4] Bank of Baroda

Bank of Baroda was opened in Vadodara, Gujrat in the year 1908. The bank is known to offer quality banking and finance services to its customers ever since its inception.

It is known to be the second largest nationalized bank in the country. The bank does not only operate in India but has its presence around the world. It operates in as many as 25 countries across the globe with more than 75 million happy customers. Dena bank and Vijaya bank merged with Bank of Baroda recently thereby making it an even bigger entity.

5] Central Bank of India

Central Bank came into being in the year 1911. It has been serving the customers happily ever since the beginning. The bank is known to offer numerous banking products.

It has a team of qualified and experienced bankers who have the answer to all your banking related queries and are always happy to help their customers. The bank has nearly 5,000 branches operating pan India. It also has offices in Hong Kong and Nairobi.

The headquarters of this bank is set up in Mumbai.

6] Canara Bank

Established in the year, 1906, Canara bank has its headquarters in Bengaluru. The bank has more than 6000 branches and nearly 9500 ATMs operating across the country. It offers several banking products and is known to offer impeccable service. It has more than 8 crore happy customers.

The bank does not only operate in India but has its branches in many other countries too. It has been serving people in New York, Hong Kong, Shanghai, London, Manama, Leicester, Johannesburg and Dubai.

7] Union Bank of India

Union Bank of India started as a limited company in the year 1919. It became a full-fledged bank in the year 1969 after nationalisation. The bank offers numerous banking products. By providing quality banking services consistently for years it has managed to acquire more than 5 crore customers.

Its customer base is increasing with every passing year. It is the proud owner of over 4500 branches spread across India. It also has branches in 4 other countries including Hong Kong, Sydney, Dubai and Antwerp.

8] UCO Bank

UCO Bank was established back in the year, 1943. It has its headquarters in Kolkatta, West Bengal. The bank has around 50 branches across the country and nearly 4000 plus service units. It has also made its presence overseas with branches in Singapore and Hong Kong.

9] Bank of Maharashtra

Bank of Maharashtra came into being in the year, 1935. The bank has been offering excellent service to its customers ever since its inception. It provides all kinds of banking and finance services. It has its headquarters in Pune. 87.74% of the total shares of the bank are held by the Government of India.

10] Indian Overseas Bank

Indian Overseas Bank was established back in the year, 1937. It has more than 3,400 branches across the country. The bank offers a host of banking services to meet the requirement of different segments of customers. After its success in the country, the bank went on to open branches in foreign land. It has 6 foreign branches.

You can safely open account and acquire other banking services from any of these banks!

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Merger News: Mega merger of 10 PSU banks takes effect; all you need to know

The merger of ten government-run banks into four will come into force from April 1. The branches of the merging banks will operate as branches of the banks in which they have been merged. Customers of merging banks will also now be treated as customers of the banks in which these banks have been merged. The banks' merger was announced last year in August and the union cabinet gave the final approval on March 4. In the past, various other bank mergers have taken place. For instance, in 2017, the country's largest public lender - the State Bank of India took over five of its associates and Bharatiya Mahila Bank. Last year, Vijaya Bank and Dena Bank were merged with Bank of Baroda. Kotak Mahindra Bankcand ING Vysya Bank merger and amalgamation of Centurion Bank of Punjab Ltd. with HDFC Bank took place in 2014 and 2008, respectively.

Here are a few aspects of the PSU bank merger:

1. As per the latest merger- Oriental Bank of Commerce (OBC) and United Bank of India (UBI) will be merged with Punjab National Bank (PNB). The merged entity will become the second-largest state-run bank. The new entity will have a business of Rs 17.95 lakh crore and 11,437 branches.

2. The amalgamation of Syndicate Bank into Canara Bank will create the fourth-largest public sector bank with Rs 15.20 lakh crore business and a network of 10,324 branches.

3. Allahabad Bank branches will operate as those of the Indian Bank. The merger of Allahabad Bank with the Indian Bank will create the seventh-largest public sector bank with Rs 8.08 lakh crore business.

4. Branches of Andhra Bank and Corporation Bank will function as the branches of Union Bank of India. Andhra Bank and Corporation Bank's merger with Union Bank of India will create India's fifth-largest public sector bank with Rs 14.59 lakh crore business and 9,609 branches.

5. The government had front-loaded Rs 68,855 crore to take care of the bank-merger plan.

6. Punjab National Bank was given Rs 16,091 crore, Union Bank of India Rs 11,768 crore, Canara Bank Rs 6,571 crore and Indian Bank Rs 2,534 crore. Allahabad Bank was provided Rs 2,153 crore, United Bank of India Rs 1,666 crore, Andhra Bank Rs 200 crore, Indian Overseas Bank Rs 4,360 crore and UCO Bank Rs 2,142 crore.

7. According to the government, the merger of the 10 banks will lead to the creation of stronger establishments. This merger would follow in the example of the amalgamation of Bank of Baroda, Vijaya Bank, and Dena Bank last year.

8. With this mega-bank mergers, the number of PSBs will get consolidated from 27 banks in 2017 to 12 banks in 2020.

9. The new 12 public sector banks will be -- six merged banks and six independent banks. State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank will be the six merged banks. And Bank of India(BoI), Central Bank of India, Indian Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab and Sind Bank, which have a strong regional focus, will remain independent entities.

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PSU banks announce share-swap ratios ahead of April 1 merger

Following the footsteps of State Bank of India and Bank of Baroda, the boards of 10 public-sector banks on Thursday approved mergers and issued share-swap ratios to create four large banks in the economy.

The four anchor banks will be Punjab National Bank, Canara Bank, Union Bank of India, and Indian Bank. The merger will be effective from April 1.

Last year, Bank of Baroda took over Vijaya Bank and Dena Bank. Before that, State Bank of India (SBI) had merged all its five associate banks with itself to enter the global top 50 banks’ list in terms of size. Punjab National Bank (PNB) will merge with United Bank of India and Oriental Bank of Commerce to create the largest bank in the country after State Bank of India.

According to notifications to the stock exchanges, Delhi-based PNB will issue 1,150 shares for 1,000 shares of Oriental Bank of Commerce, and 121 shares for 1,000 shares of United Bank of India.

Mumbai-based Union Bank of India will take Andhra Bank and Corporation Bank. Union Bank of India will issue 325 shares for 1,000 shares of Andhra Bank, and 330 shares for 1,000 shares of Corporation Bank.

Bengaluru-based Canara Bank will issue 158 shares for 1,000 shares of Syndicate Bank.

Allahabad Bank said for every 1,000 shares (face value Rs 10) of Allahabad Bank, there would be 115 shares (face value Rs 10) of Indian Bank.

The Union Cabinet had approved the consolidation to build the mega banks “to create more efficient and bigger public sector banks in the challenging environment to meet the credit needs of a growing economy and to achieve operational efficiency by scale of business”. The amalgamation will lead to a wide geographical reach, technology adaption, and, more importantly, better utilisation of scarce capital.

A grievance redress system has been put in place, and a committee has been formed headed by a retired judge. If shareholders have any issue with the swap ratio — for example, if they feel they didn’t get enough time or if they need information — they can raise it. This is the board-approved swap ratio.

“After the committee receives all the grievances, it will have seven days to recommend changes, if needed, which will be the final swap ratio,” said a top official of a PSB to be merged.

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