Higher revenues from retail and treasury segments boosted Canara Bank’s profit in the third quarter (Q3) of this fiscal (FY17). The bank’s profit in the quarter jumped 279 per cent to ₹321.88 crore from ₹84.97 crore in the same period last year.

Canara Bank’s Q3 income was flat at ₹12,079.37 crore (₹12,050.63 crore in the year-ago period). EPS (basic) stood at ₹5.93 (last year ₹1.56).

Commenting on the bank’s performance, Rakesh Sharma, MD and CEO of Canara Bank, said: “We got higher treasury revenues of ₹3,693.92 crore (₹3,167.90 crore last year). Good growth in CASA deposits and net interest income due to falling interest rates also contributed to higher profits.”

Asset quality weakened during the quarter and the bank’s gross non-performing assets (NPA) rose to ₹34,338.65 crore (₹19,813.44 crore).

Gross NPA as a per cent of total advances rose to 9.97 per cent (5.84 per cent). Net NPA rose to 22,295.79 crore (₹12,940.10 crore), and as a percentage of net advance it increased to 6.72 per cent (3.90 per cent).

Net interest income (NII) rose to ₹2,414 crore (₹2,227 crore) and net interest margin (domestic) came in at 2.34 per cent (2.29 per cent).

Non-interest income grew 53.32 per cent to ₹1,792 crore. The bank’s provision coverage ratio stood at 52.52 per cent, up from 51.75 per cent in September 2016. ROA (return on assets) and ROE (return on equity) improved to 0.22 per cent and 4.58 per cent, respectively.

Thanks to demonetisation, cost of deposits came down to 6.31 per cent from 7.01 per cent. Cash recovery during Q3 was ₹1,021 crore, taking the figure to ₹2,979 crore for the nine-month period.

Current account and savings account (CASA) deposits increased to ₹1.54 lakh crore, up 30.12 per cent year-on-year. The bank’s total business touched ₹8,41,964 crore.

Deposits stood at ₹5,10,327 crore, and advances ₹3,31,636 crore. Capital adequacy ratio improved to 12.28 per cent, up from 11.54 per cent a year ago.

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