Canara Bank reported a 200 per cent year-on-year (yoy) jump in second quarter net profit at ₹1,333 crore against ₹444 crore in the year ago period, supported by healthy growth in other income and lower loan loss provisions.

Net interest income (difference between interest earned and interest expended) was down a shade at ₹6,274 crore (₹6,305 crore in the year ago period).

Non-interest income, comprising fee based income, trading income, recoery in written-off accounts, and others, was up 37.54 per cent yoy at ₹4,268 crore (₹3,103 crore).

Loan loss provisions declined 24 per cent yoy at ₹2,678 crore (₹3,533 crore).

Fresh slippages during the quarter increased by ₹6,525 crore (₹4,253 crore in the preceding quarter).

The public sector bank made higher cash recovery of ₹3,002 crore (₹1,598 crore in the preceding quarter). Upgradation and write-offs amounted to ₹2,671 crore (₹2,292 crore) and ₹1,585 crore (₹2,574 crore), respectively.

Gross non-performing assets (NPAs) position improved 8 basis points to 8.42 per cent of gross advances against 8.50 per cent as at June-end 2021. 

Net NPA position improved 25 basis points to 3.21 per cent of net advances against 3.46 per cent as at June-end 2021. 

Net interest margin declined to 2.72 per cent from 2.82 per cent as at September-end 2020.

Global (domestic plus overseas) gross advances grew about 6 per cent yoy to ₹6,86,813 crore. 

Within domestic advances (which were up 5.71 per cent yoy), Agriculture & Allied advances grew by 13.92 per cent; retail (10.46 per cent); MSME (0.31 per cent); and corporate and others (2.23 per cent). Overseas advances increased by 9.36 per cent yoy.

Global Deposits nudged up about 9 per cent to ₹10,32,536 crore. Domestic deposits and overseas deposits increased by 7.61 per cent and 38.15 per cent, respectively.

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