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Canara Bank’s first quarter net profit grew 6.8 per cent year on year to Rs 775.24 crore (Rs 725.85 crore)
Total income for the quarter ended June 30 increased 18.9 per cent to Rs 9,165.47 crore (Rs 7,707.59 crore)
The public sector bank posted a 4 per cent higher net interest income of Rs 1,844 crore y-o-y. At a press conference on Tuesday, the Chairman and Managing Director, Mr S. Raman, said the continued de-risking strategy on interest outgo had lifted the net interest margin to 2.4 per cent. Amidst sluggish economic conditions, the bank had cut down high-interest bulk deposits by Rs 10,000 crore during the quarter.
It had also brought down and secured short-term corporate loans by Rs 22,000 crore from Rs 45,000 crore last year.
The goal was to further lift NIM in the coming quarters to 2.6 per cent by the year-end, he said. The bank made a higher NPA provisioning of Rs 477 crore, up from Rs 285 crore. Gross NPAs in the quarter were higher y-o-y at 1.98 per cent (1.67 per cent); net NPAs also higher at 1.66 per cent. (1.34).
Mr Raman admitted “some slippages” in the priority lending segments of MSME and agriculture, which had put a strain of Rs 1,500 crore on the bank in the latest quarter.
The bank share closed at Rs 384 on the BSE, down Rs 4.
> madhumathi.ds@thehindu.co.in
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