Canara Bank profit rises 11.9%

However, the state-owned bank’s gross non-performing assets rises 18.59% to Rs. 44,659.56 crore

July 25, 2018 08:46 pm | Updated 11:08 pm IST -

Canara Bank’s net profit for the three months ended June rose 11.9% year-on-year (y-o-y) to ₹281.49 crore on a revenue of ₹1,319.46 crore. Net interest income (NII) grew 43%, the bank said in a statement.

“The NII growth is primarily due to the 15.1% y-o-y growth in domestic credit backed by a whopping 36.2% growth in retail credit which, in turn, has contributed to the 14.9% y-o-y increase in interest income from advances,” Canara Bank said.

Gross NPAs rise 18.6%

While the total business registered a 11% growth to ₹9.2 lakh crore, its domestic business grew by a higher 13% y-o-y to reach ₹8.63 lakh crore.

Global deposits rose 9.75%, while its domestic deposits increased 11.6%.

At the same time, the state-owned bank’s gross non-performing assets (NPAs) rose 18.6% to ₹44,659.56 crore compared with ₹37,657.76 crore during the same period a year earlier. Net NPAs rose 9.84% to ₹26,693 crore from ₹24,300.63 crore.

CASA deposits posted a 9.1% y-o-y growth with the savings bank deposits registering a 11.8% y-o-y growth. The CASA ratio stood at 32.43%.

On the asset quality side, “signs of recovery were visible” with recovery and upgradations, backed by a 56% quarter-on-quarter improvement in cash recovery.

“The stressed assets ratio is sequentially down to 12.1%, from 12.7%, highlighting the consistent efforts of the bank in improving the asset quality.

Further, the provision coverage ratio has improved to 60.69% from 54.52%,” the bank said in the statement.

Further, the bank has calibrated its growth in the corporate sector by limiting its exposure to sectors under stress and incrementally growing its business only with those corporations that are highly rated.

The Bengaluru-headquartered bank is “highly optimistic” about sustaining this growth momentum with present capital and potential business growth. “Comfortable capital position of the bank gives further impetus for taking lending into the next trajectory. Further, with the various steps already initiated for transformation, the management is hopeful of much-improved performance during 2018-19.”

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


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 The Hindu 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.