Comments
Canara Bank reported a 1.86 per cent growth in net profits for the June quarter, boosted by higher interest income and advances. The Bangalore-headquartered bank reported a net profit of ₹806.86 crore, against ₹792.07 crore in the corresponding last quarter. On a sequential basis, net profits were up 32.1 per cent
Total income for the quarter was up 11.6 per cent at ₹11,728 crore, against ₹10,507 crore. The other income declined 17 per cent to ₹1,026 crore.
Following the earnings announcement, Canara Bank shares fell on the NSE to end at ₹399, shedding 3.16 per cent over the previous close.
Commenting on the bank’s performance, Chairman and Managing Director RK Dubey said the bank recorded a quarterly profit of over ₹800 crore during the June quarter, after almost eight quarters. Cash recovery during the quarter stood at a record ₹2,019 crore, more than twice the ₹888 crore achieved in the corresponding previous quarter.
Net interest income, the difference between interest earned and spent, grew 22 per cent to ₹2,429 crore, against the similar last quarter’s ₹1,991 crore. The net interest margin improved to 2.42 per cent from 2.33 per cent in the previous quarter.
Net advances grew 21 per cent during quarter with the bank continuing to witness robust growth in its retail lending business. The core fee income, excluding treasury profits, was up 18 per cent to ₹936 crore.
The bank has increased the provision coverage ratio to 60.10 per cent from 58.18 per cent last year. Total provision for the quarter stood at ₹988 crore. Expanding its footprint, it added 255 branches and 197 ATMs.
Higher provisioning The provisions made for non-performing assets (NPAs) tripled to ₹1,125 crore, against the last corresponding period’s ₹443 crore. The gross NPA stood at ₹8,160 crore with gross NPA ratio coming down to 2.67 per cent during the quarter.
Dubey said the bank will tap the markets this quarter to raise ₹3,000 crore through qualified institutional placement (QIP) to shore up capital. Canara Bank, which has already received the Reserve Bank of India’s permission for the proposed QIP issue, sought shareholders’ approval on Monday at the annual general meeting for the fund-raising exercise. Results of e-voting on the fund-raising proposal will be announced shortly, sources said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.