City-headquartered public sector lender Canara Bank reported a 32.5 per cent decline in its net profit for the second quarter of the fiscal 2017 ended September 30, 2016 due to higher provisioning for bad loans.
The net profit of the bank stood at Rs.357 crore as against Rs.529 crore in the corresponding quarter last year.
The total provision made in Q2 stood at Rs.1,784 crore compared to Rs.1,415 crore in the same period last year. The provision for NPAs was at Rs.1,558 crore as against Rs.979 crore in the same period last year.
The total income also declined two per cent to Rs.12,187 crore during the quarter from Rs.12,477.9 crore when compared to the same period last year.
Commenting on the performance Canara Bank MD and CEO Rakesh Sharma said, “The provisions rose due to the asset quality review conducted by the Reserve Bank of India. We are taking necessary steps to recover the bad loans from across the sectors.”
Canara Bank’s gross Non-Performing Assets (NPA) ratio increased to 9.81 per cent during the quarter from 4.27 per cent a year ago period. The net NPA ratio stood at Rs.6.69 period from 2.90 per cent a year ago period. The bank also said that the Centre has intimated to Rs.997 crore equity capital during the year.
