Canara Bank Wednesday reported a 12
percent year-on-year (YoY) rise in net profit at Rs 281.49 crore for the first
quarter of the new fiscal year ending June 2018. The bank had posted a profit
of Rs 252 crore in the year-ago period.
The Q1 profit of
the Bengaluru-based public sector bank was helped by a healthy growth in
net interest income (NII) and a decline in bad loans from the previous quarter.
In the previous
quarter ending March 2018, Canara Bank had made a huge loss of Rs 4,860 crore
on account of substantially higher provisions to cover bad loans.
During the
quarter, NII -- the difference between interest earned on loans and that paid
on deposits jumped 43 percent YoY to Rs 3,882.9 crore from Rs 2,713 crore
in the June quarter last year.
However,
other income or non-interest income fell 13 percent to Rs 1,832.9 crore from Rs
2,108.5 crore in Q1FY18.
Asset
quality
Provisions
during the quarter inched up 17 percent to Rs 2,582.3 crore (Rs
2,466 crore towards bad loans) from Rs 2,203.7 crore in the corresponding
quarter last year.
In January to
March period, provisions for the public sector bank had shot up to Rs 9,075
crore.
Gross
non-performing assets (NPAs) as a ratio of gross advances improved
to 11.05 percent from 11.84 percent in the March quarter ending 2018. A
year ago, the gross NPA ratio was lower at 10.56 percent in the June quarter of
2017.
Net NPA
ratio also declined to 6.91 percent from 7.48 percent at the end of March
2018 and 7.09 percent as on June 2017.
Loans
and Deposits
Total advances
edged up by 1.2 percent to Rs 3.86 lakh crore and deposits also grew in the
same range by 1.6 percent to Rs 5.33 lakh crore.
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