Canara Bank fourth quarter net profit at ₹214.18 crore

Steel sector proves a drag on quarter-on-quarter numbers

May 08, 2017 09:53 pm | Updated 10:00 pm IST - BENGALURU

Rakesh Sharma, MD and CEO, Canara Bank.

Rakesh Sharma, MD and CEO, Canara Bank.

Canara Bank reported a net profit of ₹214.18 crore for the fourth quarter ended March 31, 2017 as against a net loss of ₹3,905.49 crore in the same period last year.

The total income of the bank for the January–March period stood at ₹12,889 crore as against ₹ 12,116.14 in the same period last year. The net interest income witnessed a growth of 14.08% to ₹ 2,708 crore when compared with the same period last year.

However, on sequential basis, the bank’s net profit witnessed a decline of about 33% in the fourth quarter mainly due to higher provisioning.

“Our net interest income and other come has witnessed a growth in the quarter,” said Rakesh Sharma, managing director and CEO, Canara Bank.

“However, because of NPAs, the provision coverage ratio has increased to 55.62% from 52.52% in the last quarter. The global steel industry was under pressure, we have significant exposure to this sector and much of the NPA happened there,” he said.

Higher provisions

The provisions during the quarter stood at ₹ 2708.74 crore against ₹ 1,484.57 crore in the previous quarter. For the full year, the net profit stood at ₹1,122 crore as against a loss of ₹2,813 crore in the previous fiscal. For the quarter, the gross NPA ratio declined to 9.63% from 9.97% in the previous quarter and the net NPA ratio to 6.33% (6.72%).

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