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

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.”