Money & Banking

Canara Bank Q1 profits fall 28% on higher provisioning

Anjana Chandramouly Bangalore | Updated on July 27, 2011

Increase in provisioning for non-performing assets (NPAs) and decline in trading profits brought down net profits for Canara Bank 28 per cent to Rs 725.85 crore for the April-June quarter of the 2011-12 fiscal compared with Rs 1,013.37 crore recorded during the corresponding quarter last year.

The bank saw an increase in provision on NPAs of Rs 285 crore due to the changed provisioning norms. Its trading profit dipped by Rs 300 crore due to rising G-Sec yield.

“There was also a reversal of interest of Rs 210 crore due to slippages as we shifted to system-based NPA identification of up to Rs 2 lakh,” said Mr S. Raman, Chairman and Managing Director, Canara Bank.

Without the additional provisioning and reversal of interest, the bank’s net profit would be at Rs 1,521 crore, he pointed out. The bank’s net interest income stood at Rs 1,793 crore (Rs 1,727.83 crore).

Published on July 27, 2011

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